TRGP · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

Targa Resources Corp. · 2026-08-06 · Importance 41 · Surprise 38

Six-month income tax expense increased $94.8 million, or 37%, to $351.1 million from $256.3 million. Second-quarter income tax expense increased $43.1 million, or 23%, to $227.2 million. The increases were primarily caused by higher pre-tax book income, while six-month net income attributable to Targa increased $344.6 million to $1,244.2 million. Six-month cash tax expense used in adjusted cash flow from operations was $0.7 million, compared with $29.6 million in the prior-year period.

Key facts

• IRS examinations are currently in process for the 2022 taxable year for certain wholly-owned and consolidated subsidiaries as of June 30, 2026. source
• Amortization in interest expense for six months ended June 30, 2026: $10.0 million; compensation on equity grants: $41.2 million; deferred income tax expense: $350.3 million source
• Valuation allowance for deferred tax assets was $5.9 million as of June 30, 2026 and December 31, 2025. source